ProjectsWork plan for IFRSIFRS 11 Joint Arrangements—Remeasurement of previously held interest – Obtaining control or joint control of a business that is a joint operation

IFRS 11 Joint Arrangements—Remeasurement of previously held interest – Obtaining control or joint control of a business that is a joint operation

Proposed changes – Narrow scope amendments to IFRS Standards

IFRS 3 Business Combinations and IFRS 11 Joint Arrangements—Remeasurement of previously held interest – Obtaining control or joint control of a business that is a joint operation

The International Accounting Standards Board (the Board) published Exposure Draft Definition of a Business and Accounting for Previously Held Interests (the ED). This project relates to the proposed amendments to IFRS 3 and IFRS 11 included in the ED that clarify how an entity accounts for previously held interest in situations in which it obtains control or joint control of a business that is a joint operation. See section ‘related projects’ below for a link to other transactions discussed by the IFRS Interpretations Committee (the Committee) and the Board as part of this project.

The amendments to IFRS 3 would clarify that when an entity obtains control of a business that is a joint operation, it remeasures previously held interest in that business.

The amendments to IFRS 11 would clarify that when an entity obtains joint control of a business that is a joint operation, the entity does not remeasure previously held interest in that business.

At its April 2017 meeting, the Board tentatively decided to finalise the amendments to IFRS 3 and IFRS 11 with no substantive changes. The Board tentatively decided to clarify in the amendments to IFRS 3 that when an entity obtains control of a business that is a joint operation, it remeasures its overall previously held interest in that business.

Next steps

The Board will consider the effective date and due process steps at a future meeting.